Senior Retirement Plans Representative, Client Services
Ohio National Financial Services
in OH

PTOC-Retirement Planning Consultant
Transamerica
in PA

Pension Administrator
ACCG GEBCorp
in GA

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Excise Tax on High-Cost Health Plans: Strategies You Can Use
September 24, 2015 WEBCAST
(Mercer)

Overview of New IRS Section 430 Regulations
October 1, 2015 WEBCAST
(Conference of Consulting Actuaries)

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[Guidance Overview]

IRS Issues Final Regs on Funding for Single-Employer Pension Plans
"Under the proposed regulations, liquidity shortfalls could only be corrected through contributions, and the excise tax would apply for every quarter until the liquidity shortfall for a quarter was corrected through contributions. The final regulations provide ... that a payment of the liquidity shortfall is treated as unpaid until the end of the quarter in which the due date occurs.... Accordingly, each quarter will stand on its own, and there will be a correction of an earlier liquidity shortfall if the plan has sufficient liquid assets at the end of a succeeding quarter so that there is no longer a liquidity shortfall." (Cheiron)  

[Advert.]

PSCA's 68th Annual National Conference, Oct. 14-16, Chicago, IL

Your DC plan is the first step in helping employees be prepared for retirement. Attend PSCA's National Conference and learn how to get your employees to financial wellness using the plan's design, investments, compliance and education. Register NOW!

Leading the Horses to Water: 401(k) Plan Re-Enrollment and 'Backsweeps'
"Like any other material plan design choice, the decision to do a backsweep of current employees and/or to re-enroll participants in a QDIA involves a combination of finance, human resources, employee communications, and other concerns. However, concerns about legal risk should not be an impediment to these actions. Various 'safe-harbor' provisions of ERISA enacted as part of PPA '06 affirm the legality of both backsweeps and re-enrollments, as long as specified required steps are taken to comply with those safe-harbor provisions[.]" (Morgan Lewis)  

DOL Secretary Describes Upcoming Regs Governing State-Sponsored Retirement Plans for Private Employers
"[As] states explore their options, they are going to have questions for the [DOL] about how they can avoid running afoul of [ERISA]. At the president's direction, we have developed a proposed rule, which has been sent to [OMB] for their review. We can't get into the specifics of the proposal until it is published for public comment, but we can say that it will set forth circumstances in which states can administer auto-enrollment IRA savings programs, funded with payroll deductions, without requiring employers to create ERISA-covered plans. We also plan to issue guidance at the same time about how states might pursue an alternative approach that would promote the creation of ERISA-covered plans, which would be fully subject to ERISA's rights and protections." (U.S. Department of Labor [DOL] Blog)  

House Democrats Draft Letter Questioning DOL Fiduciary Rule
"In a carefully crafted letter, nine House Democrats are asking the DOL for 'improvements' to the rule. The letter questions the exemptions for compensation practices, investor education and the implementation plan. 'In order to have a successfully implemented rule, it is vital that the proposal doesn't limit consumer choice and access to advice, have a disproportionate impact on lower- or middle-income communities, or raise the costs of saving for retirement,' the letter states." (InsuranceNewsNet.com)  

State Street Global Retirement Survey 2015 (PDF)
16 pages. "Among U.S. investors participating in an employer-sponsored retirement plan, 51% of these 'in-plan savers' feel extremely or very confident about their retirement readiness, up from 36% last year.... Among U.S. in-plan savers, 66% say the top reason for feeling confident is 'having invested appropriately.' In addition, 80% say 'have not saved enough' is the top reason for lack of confidence." (State Street Global Advisors)  

Building Savings and Retirement Security in the Wake of Crisis
"[T]he 401(k) system has gaps and deficiencies that need to be addressed ... But on the whole, Americans' preparedness for retirement is better today than it has ever been before.... Retirement assets per household at the end of 2014 were more than seven times greater than they were in 1975, even after adjusting for inflation. Today's households enjoy significantly greater assets earmarked for retirement than their counterparts did when defined benefit plans were much more prevalent.... In 2013, 33 percent of retirees received income from private-sector retirement plans -- up by more than half from 1975. And the median income received by those retirees, in constant dollars, has risen by more than one-third.... The 'slow and steady' design of 401(k) plans helps limit the impact of investment shocks. 401(k)s tend to suppress the sort of bad investor behavior -- such as trying to time the market -- that can really damage long-term returns." (Investment Company Institute [ICI])  

Pennsylvania Governor Proposes New Retirement System Compromise
"The proposed plan includes a mandatory, 401(k)-style plan for all new employees making at least $75,000 annual income. In addition, all employees could be given the option to participate only in a defined contribution plan at their time of hire. The plan also features a risk-sharing component for all new employees.... [T]his proposed plan would reduce Wall Street management fees within the state's two largest retirement systems by a combined $200 million annually. The total savings to the state are an estimated $20.2 billion." (Pensions & Investments)  

Plaintiffs' Misdirected Demand for Documents Fails, Claim for ERISA Civil Penalties Is Dismissed
"The court noted that the purpose of the civil penalty under section 502(c) 'is not to compensate participants for injuries but to punish noncompliance with ERISA.' The statute sets out important disclosure requirements, among them the obligation of the plan administrator, upon written request from any participant or beneficiary, to furnish a copy of the latest [documents] ... [T]he Boyd plaintiffs did not ask the correct entity for the documents. Sysco was the plan administrator of the plan, UBH was the claims administrator for the mental health benefits, and nothing in the plan defined the 'plan administrator' as the 'claims administrator.' " [Boyd v. Sysco Corp., No. 4:13-cv-00599 (D.S.C. Sept. 3, 2015)] (Williams Mullen)  

Pending Supreme Court Case Carries Implications for ERISA Class Actions
"Many courts do not now require that a class definition exclude the possibility that a class member suffers no injury.... A Tyson win therefore could mean that a putative ERISA class challenging a defective Summary Plan Description that applied to a class of plan participants will not be certified unless class counsel can trace the defect, in roadmap fashion, to a common injury for each class member. It could mean that a putative ERISA class challenging allegedly excessive fees for a plan investment in a defined contribution plan will not be certified unless class counsel can show how each class member will receive a common increase in benefits should the claim succeed." [Tyson Foods v. Bouaphakeo, No. 14-1146 (8th Cir. Aug. 25, 2014; cert. pet. granted June 8, 2015)] (Seyfarth Shaw LLP)  

ERISA Industry Committee Strongly Supports Senate in Repeal of Excise Tax
ERIC [ERISA Industry Committee]

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